Sunday, July 27, 2014

Dividends & Income TGT - Target should you buy it?

Sunday
evening is a good time to look for stocks for income.Once I find a stock that meets all four of
my Dividend Machine criteria, I profile it here on my blog and I quite often
invest in the stock myself.

Often
times I can go through 20 stocks and find nothing.But today it took only three.

Stocks
that did not make the grade.

I
use “TheStreet.com’s” dividend calendar as my first source for finding a new
Dividend Machine.I simply click on any
stock with a yield around 3.5% or higher.I avoid funds, floating rate notes, and even real estate investment
trusts.I concentrate on individual
stocks.I found three stocks right away
that pay a dividend greater than 3.5%.I dug deeper into my analysis to determine if indeed these stocks meet
all four of my criteria.The results
are listed below.

Then I found TGT, Target corp., with a 3.44%
yield.Do you know that their dividend
growth averaged 45% every year from $.16 per quarter in Aug. 2008 to $.52 in
Aug. 2014? Earnings are $2.96 with dividends of $2.08 and their D/E ratio is a
very respectable.85%.By every measure
TGT is a Dividend Machine and I will add it to the model portfolio.

Clearly,
TGT's stock price has collapsed from $72 to just over $60 because of their credit
card security issues as well as the inherent difficulties of retail.But as I always remind you, for the purposes
of these model portfolios, I do not use any other variables then the four
criteria that make a stock a Dividend Machine.

TGT’s
Dividend Machine Fundamentals are presented in the table below.

Consider
Target, TGT, for the income producing portion of your 2014 portfolio.

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Covered Call Opportunities

Square, symbol SQ, is my current favorite stock that is not a dividend machine. To turn it into an income investment, I use SQ's volatiity to buy when it dips and sell calls. See the table above. Note that this call is not included in the post published on 12/12/18 M*

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TheMoneyMadam's Story

My income investing success came from my experience managing my and other people's money since 1993. Successful income investing requires discipline. In this blog I provide specific investments based on my principles of conservative income investing. I hope to help the thousands or even millions of people who have saved and want to invest their nest eggs to retire with income that grows. M* MoneyMadam

Disclaimer

Information on this blog does not constitute investment advice. Review or mention of any stock, bond, or other investment shall not be considered a buy or sell recommendation. Everything in this blog is the opinion of the author and no warranties are expressed or implied. M*MoneyMadam.